This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Economic Growth > Economic Growth – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Economic Growth Quiz 33 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Resource Management Act (1991) is about making sure NZ: A) Makes efficient resources. B) Uses sustainable practices to protect natural & physical resources. C) Uses as many natural & physical resources as possible. D) Finds new natural & physical resources. Show Answer Correct Answer: B) Uses sustainable practices to protect natural & physical resources. 2. Why did the ONU give this proposal? A) Because they wanted to. B) For freedom. C) Because they want a planet with no contamination. D) Sustained and inclusive economic growth can drive progress, create decent jobs for all and improve living standards. Show Answer Correct Answer: D) Sustained and inclusive economic growth can drive progress, create decent jobs for all and improve living standards. 3. Capital Goods A) The materials and labor used to create goods and services. B) Includes the skills and knowledge of its people that support the economy. C) The total dollar value of all goods and services produced by a country in one year. D) The man-made materials that are needed to produce goods and services. Show Answer Correct Answer: D) The man-made materials that are needed to produce goods and services. 4. What region is best known for seafood, peanuts, shipbuilding, tourism, and military bases? A) Coastal Plain (Tidewater). B) Valley and Ridge. C) Blue Ridge Mountains. D) Appalachian Plateau. Show Answer Correct Answer: A) Coastal Plain (Tidewater). 5. The total dollar value of all final goods and services produced within the country's border in a given year. This measure includes inflation. A) Gross National Product (GNP). B) Gross Income Measure (GIM). C) Nominal Gross Domestic Product (GDP). D) None of above. Show Answer Correct Answer: C) Nominal Gross Domestic Product (GDP). 6. Negative output gap puts downwards pressure on inflation A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 7. Which of the following is a true representation of aggregate demand? A) AD = C-I-G + X-M. B) AD = C + I-G-X + M. C) AD = C + I + G-X-M. D) AD = C + I + G + X-M. Show Answer Correct Answer: D) AD = C + I + G + X-M. 8. What are the costs of economic growth for the government? A) Increase in government spending on welfare payments. B) Increase in consumer confidence. C) Decrease in government tax revenues. D) Improvement in government budget. Show Answer Correct Answer: A) Increase in government spending on welfare payments. 9. The AD curve slopes downwards because A) At high prices less is consumed in an economy. B) At higher prices more is sold in an economy. C) The AS slopes upwards. D) All of these reasons. Show Answer Correct Answer: A) At high prices less is consumed in an economy. 10. What basic amenities do people living in Mumbai's squatter settlements have access to? A) Water, electricity, and televisions. B) Water and electricity only. C) Electricity and televisions only. D) Water and televisions only. Show Answer Correct Answer: A) Water, electricity, and televisions. 11. What does the following argument, which is based on diminishing marginal returns, favor the most?Even though deepening human and physical capital will tend to increase GDP per capita, the law of diminishing returns suggests that as an economy continues to increase its human and physical capital, the marginal gains to economic growth will diminish. For example, raising the average education level of the population by two years from a tenth-grade level to a high school diploma (while holding all other inputs constant) would produce a certain increase in output. An additional two-year increase, so that the average person had a two-year college degree, would increase output further, but the marginal gain would be smaller. Yet another additional two-year increase in the level of education, so that the average person would have a four-year-college bachelor's degree, would increase output still further, but the marginal increase would again be smaller. A similar lesson holds for physical capital. If the quantity of physical capital available to the average worker increases, by, say, $ 5, 000 to $ 10, 000 (again, while holding all other inputs constant), it will increase the level of output. An additional increase from $ 10, 000 to $ 15, 000 will increase output further, but the marginal increase will be smaller. A) Aggregate Production. B) Capital Deepening. C) Convergence. D) Productivity. Show Answer Correct Answer: C) Convergence. 12. What are the building blocks for sustaining high growth? A) Income inequality, education, and job opportunities. B) Early childhood development and quality education. C) Macroeconomic stability, human capital, and infrastructure. D) Trade unions and environmental sustainability. Show Answer Correct Answer: C) Macroeconomic stability, human capital, and infrastructure. 13. What is the potential long-term impact of recession on an economy's Production Possibility Curve (PPC)? A) Inward shift of the PPC. B) Outward shift of the PPC. C) No impact on the PPC. D) Temporary shift of the PPC. Show Answer Correct Answer: A) Inward shift of the PPC. 14. Does the size of the country have anything to do with their GDP? A) Yes. B) No. C) I don't know. D) I don't care. Show Answer Correct Answer: A) Yes. 15. Education, training, skills and health are examples of A) Capital goods. B) Human capital. C) Natural resources. D) Profit. Show Answer Correct Answer: B) Human capital. 16. Which of the following is NOT a factor of economic growth? A) Natural resources. B) Human capital. C) Entrepreneurs. D) Capital humans. E) Capital goods. Show Answer Correct Answer: D) Capital humans. 17. Paragraph 4 supports the idea that increased agricultural production was important for the expansion of industry primarily because it A) Resulted in an improvement in the health of the rural cottage workers used by manufacturers. B) Provided new types of raw materials for use by industry. C) Increased the number of available workers in rural areas. D) Helped repair some of the ravages of the Thirty Years' War. Show Answer Correct Answer: C) Increased the number of available workers in rural areas. 18. How do literacy rates affect their standard of living? A) The higher the literacy rates the lower the standard of living. B) The higher the standard of living the lower the literacy rate. C) The higher the literacy rates the higher the standard of living. D) The lower the literacy rates the higher the standard of living. Show Answer Correct Answer: C) The higher the literacy rates the higher the standard of living. 19. Which if the following is a negative of economic growth? A) More income for the government through taxes. B) Companies investing in environmentally friendly products. C) Depletion of natural resources. D) Increased employment and income levels. Show Answer Correct Answer: C) Depletion of natural resources. 20. An increase in which of the following is most likely to promote economic growth? A) Consumer spending. B) Investment tax credits. C) Real interest rates. D) Natural rate of unemployment. E) Trade fails. Show Answer Correct Answer: B) Investment tax credits. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesEconomic Growth Quiz 1Economic Growth Quiz 2Economic Growth Quiz 3Economic Growth Quiz 4Economic Growth Quiz 5Economic Growth Quiz 6Economic Growth Quiz 7Economic Growth Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books